Recently, Taihua New Materials announced that the company and its chairman Shi Qingdao, general manager Shen Weifeng, board secretary Luan Chenglian and other relevant responsible persons received a warning letter issued by the Zhejiang Securities Regulatory Bureau due to the company's failure to disclose the forward foreign exchange transaction in a timely manner.
Forward foreign exchange transactions were not disclosed in a timely manner
In August this year, Taihua New Materials announced that the company built a new "green multi-functional nylon new material integration project" in Hongze District, Huai'an City, and signed some equipment procurement contracts on December 15, 2021 and March 16, 2022. According to the contract amount 62At 1.9 billion yen, it is about 54.14 million US dollars.
In order to lock in the cost of equipment procurement, especially in the case of the appreciation of the US dollar against the yen, the company locked up the forward foreign exchange on December 5, 2022 and February 7, 2023, respectively**302.3 billion yen, 319.6 billion yen and locked in a forward USD/JPY exchange rate at 12505-128.Between 72. According to this calculation, the contract amount is 621.9 billion yen is about 48.79 million US dollars. This represents savings of approximately $5.35 million in equipment costs compared to the exchange rate at the time of contract signing.
However, it was not until August 22 this year that Taihua New Materials supplemented the board of directors' deliberation procedures and information disclosure obligations on this matter, which violated Articles 3 and 22 of the Administrative Measures for Information Disclosure of Listed Companies (Decree No. 182 of the CSRC). In addition, according to the relevant regulations, Shi Qingdao, chairman of the company, Shen Weifeng, general manager, and Luan Chenglian, secretary of the board of directors, should bear the main responsibility for the above violations.
According to Article 52 of the Administrative Measures for Information Disclosure of Listed Companies (Decree No. 182 of the CSRC), the Zhejiang Securities Regulatory Bureau decided to issue warning letters to Taihua New Materials, Shi Qingdao, Shen Weifeng, and Luan Chenglian, respectively, and recorded them in the market integrity file. At the same time, the company and relevant personnel are required to fully learn lessons, strengthen the Xi of relevant laws and regulations, improve the awareness of standardized operation, ensure the truthfulness, accuracy and completeness of information disclosure, and submit a written rectification report within 10 working days from the date of receipt of the decision.
Regarding the rectification and improvement, the reporter called Taihua New Materials, but as of press time, no reply has been received from the other party.
The reporter also noted that as of June 30, the above-mentioned forward foreign exchange transactions have brought 2772 to Taihua New MaterialsThe exchange loss of 790,000 yuan accounted for 10% of the net profit attributable to shareholders of listed companies in 202232%, the cumulative floating loss amount has exceeded 10% of the company's audited net profit in the latest year and the absolute amount is greater than 10 million yuan.
Inaccurate disclosure of multi-period cash flow statements
Before the warning letter was issued by the Zhejiang Securities Regulatory Bureau, Taihua New Materials, Shi Qingdao, Shen Weifeng, Luan Chenglian and other relevant responsible persons had been named by the Shanghai Stock Exchange and given a regulatory warning.
It should be pointed out that this is not the first time that Taihua New Materials has been named. At the end of October last year, the company and its chairman Shi Qingdao, general manager Shen Weifeng, and then chief financial officer Li Zenghua were criticized by the Shanghai Stock Exchange.
On July 28 last year, Taihua New Materials disclosed the announcement of the correction of accounting errors, saying that when the company was preparing the cash flow statement for the first quarter, half year, third quarter and first quarter of 2022, due to errors in the data statistics of matters such as the endorsement of notes receivable, forfaiting business and transactions between parent and subsidiary, etc., the presentation of operating activities, investment activities and financing activities in the cash flow statement was inaccurate;The Company's cash flow statements for bill margins, wealth management products and exchange gains and losses were incorrect, resulting in inaccurate statements of operating activities, investment activities and financing activities in the cash flow statements for the relevant periodsDue to the incorrect presentation of the cash flow corresponding to R&D materials, long-term asset input tax, tax refund, etc., the inaccurate presentation of operating activities and investment activities in the cash flow statement for the relevant period resulted in inaccuracyIn the third quarter of 2021, the Company did not fully consider the impact of the nature of equity incentive payments, resulting in inaccurate presentations of operating activities and financing activities in the cash flow statement for the relevant period.
In this regard, the Shanghai Stock Exchange said that the data statistics and project presentation of the cash flow statement of the company's multi-period periodic report were inaccurate, and there were many affected subjects, resulting in the financial data disclosed in the company's multi-period periodic report being inconsistent with the actual situation, reflecting the company's financial management defects.
The above-mentioned behavior of Taihua New Materials violated the relevant provisions of the Rules for the Preparation of Information Disclosure of Companies Offering to the Public No. 15 - General Provisions on Financial Reporting and the Listing Rules of the Shanghai **Stock Exchange** (2020 and 2022 revised editions). At the same time, Shi Qingdao, chairman of Taihua New Materials, Shen Weifengren, general manager, and Li Zenghua, then chief financial officer, as relevant responsible persons, failed to be diligent and conscientious, and were responsible for the company's violations, and violated relevant regulations and commitments.
In this regard, it has been reviewed and approved by the Disciplinary Committee of the Shanghai Stock Exchange, in accordance with Article 13 of the ** Listing Rules2.Article 3 and the provisions of the "Implementation Measures for Disciplinary Sanctions and Regulatory Measures of the Shanghai ** Exchange" and the "Guidelines for the Application of the Self-Regulatory Rules for Listed Companies on the Shanghai ** Exchange No. 10 - Implementation Standards for Disciplinary Sanctions", the Shanghai Stock Exchange notified Taihua New Materials, the then chairman Shi Qingdao, the then general manager Shen Weifeng, and the then chief financial officer Li Zenghua to criticize it, and notified the China Securities Regulatory Commission and recorded it in the integrity file of the listed company.